Assalamu Alaikum Wa Rahmatullah
Is stock trading halal or haram?
بسم الله الرحمن الرحيم
In the name of Allah, the Most Gracious, the Most Merciful.
Assalamualaikum Wa Rahmatullahi Wa Barakaatuh
The matter of stock trading has been under scrutiny for some time. As time has advanced into stock trading and shares a lot of Muslims find themselves in a dilemma to it being halal or haram.
The contemporary scholars are of the opinion to its being permissible under some rules and conditions, if the conditions are met then it would be permissible to buy and sell but if they are not met then it would be impermissible to take part in such trading.
The conditions are as follows:
1. The business is permissible such as textile or any other halal form of business
2. That all the business is not in liquid form but rather has some fixed assets also like building or other forms of a fixed asset
3. If the company is dealing with interest then this issue is raised in the meetings.
4. When the profit of the business is shared whatever interest is accumulated on the profit must be given in charity.
With these conditions, stock trading would be permissible. (Fiqhi Maqalaat vol 1 page 151 Meman publishers)
Only Allah knows best
Written by Maulana Irfan Ali
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham